4.4 Double taxation treatment
There are two methods to avoid double taxation:
Exemption : Income received from entities (dividends, capital gains, profits from permanent establishments, etc.) is not included in the tax base of the entity that receives it. That is, such income is taxed exclusively at the headquarters of the entity that generates it and, when it is received by another taxpayer, no additional taxation occurs in the same.
Imputation : The income indicated is included in the tax base of the entity that receives it, deducting from its total quota a certain amount paid as a tax of the same nature, in order to avoid double taxation.